[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4468 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4468

 To improve certain compensation, health care, and education benefits 
   for individuals who serve in a reserve component of the uniformed 
                   services, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 7, 2005

   Mr. Smith of Washington introduced the following bill; which was 
  referred to the Committee on Armed Services, and in addition to the 
Committees on Government Reform and Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 To improve certain compensation, health care, and education benefits 
   for individuals who serve in a reserve component of the uniformed 
                   services, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Enhancing 
America's Guard and Reserve Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                     TITLE I--COMPENSATION MATTERS

Sec. 101. Nonreduction in pay while Federal employee is serving on 
                            active duty in a reserve component of the 
                            uniformed services.
Sec. 102. Assistance for State and local governments that continue to 
                            pay employees who serve on active duty in a 
                            reserve component of the uniformed 
                            services.
Sec. 103. Active-duty reserve component employee credit added to 
                            general business credit.
Sec. 104. Eligibility for retired pay for non-regular service.
              TITLE II--HEALTH CARE AND EDUCATION MATTERS

Sec. 201. Expanded eligibility of selected reserve members under 
                            TRICARE program.
Sec. 202. Increase in amount of basic educational assistance under the 
                            Montgomery GI Bill for members of reserve 
                            components.
Sec. 203. Prohibition on denial of benefits under the Montgomery GI 
                            Bill for members of reserve components in 
                            conjunction with calls to active duty.
                      TITLE III--COMMUTING MATTERS

Sec. 301. Limited use of telecommuting to satisfy inactive-duty 
                            training prescribed or authorized for 
                            members of reserve components.
Sec. 302. Priority for space-available travel for members of reserve 
                            components.

                     TITLE I--COMPENSATION MATTERS

SEC. 101. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS SERVING ON 
              ACTIVE DUTY IN A RESERVE COMPONENT OF THE UNIFORMED 
              SERVICES.

    (a) In General.--Subchapter IV of chapter 55 of title 5, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5538. Nonreduction in pay while serving on active duty in a 
              reserve component
    ``(a) An employee who is also a member of a reserve component and 
is absent from a position of employment with the Federal Government 
under a call or order to serve on active duty for a period of more than 
30 days shall be entitled to receive, for each pay period described in 
subsection (b), an amount equal to the amount by which--
            ``(1) the amount of civilian basic pay that would otherwise 
        have been payable to the employee for such pay period if the 
        employee's civilian employment with the Government had not been 
        interrupted by the service on active duty, exceeds (if at all)
            ``(2) the amount of military compensation that is payable 
        to the employee for the service on active duty and is allocable 
        to such pay period.
    ``(b)(1) Amounts under this section shall be payable with respect 
to each pay period (which would otherwise apply if the employee's 
civilian employment had not been interrupted) that occurs--
            ``(A) while the employee serves on active duty for a period 
        of more than 30 days;
            ``(B) while the employee is hospitalized for, or 
        convalescing from, an illness or injury incurred in, or 
        aggravated during, the performance of such active duty; or
            ``(C) during the 14-day period beginning at the end of such 
        active duty or the end of the period referred to in 
        subparagraph (B).
    ``(2) Paragraph (1) shall not apply with respect to a pay period 
for which the employee receives civilian basic pay (including by taking 
any annual, military, or other paid leave) to which the employee is 
entitled by virtue of the employee's civilian employment with the 
Government.
    ``(c) Any amount payable under this section to an employee shall be 
paid--
            ``(1) by the employing agency of the employee;
            ``(2) from the appropriation or fund that would be used to 
        pay the employee if the employee were in a pay status; and
            ``(3) to the extent practicable, at the same time and in 
        the same manner as would civilian basic pay if the employee's 
        civilian employment had not been interrupted.
    ``(d) In consultation with Secretary of Defense, the Office of 
Personnel Management shall prescribe such regulations as may be 
necessary to carry out this section.
    ``(e)(1) In consultation with the Office, the head of each agency 
referred to in section 2302(a)(2)(C)(ii) shall prescribe procedures to 
ensure that the rights under this section apply to the employees of 
such agency.
    ``(2) The Administrator of the Federal Aviation Administration 
shall, in consultation with the Office, prescribe procedures to ensure 
that the rights under this section apply to the employees of that 
agency.
    ``(f) For the purpose of this section--
            ``(1) the terms `active duty for a period of more than 30 
        days', `member', and `reserve component' have the meanings 
        given such terms in section 101 of title 37;
            ``(2) the term `civilian basic pay' includes any amount 
        payable under section 5304;
            ``(3) the term `employing agency', as used with respect to 
        an employee entitled to any payments under this section, means 
        the agency or other entity of the Government (including an 
        agency referred to in section 2302(a)(2)(C)(ii)) with respect 
        to which the employee has reemployment rights under chapter 43 
        of title 38; and
            ``(4) the term `military compensation' has the meaning 
        given the term `pay' in section 101(21) of title 37.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of title 5, United States Code, is amended by inserting 
after the item relating to section 5537 the following new item:

``5538. Nonreduction in pay while serving on active duty in a reserve 
                            component.''.
    (c) Application of Amendment.--Section 5538 of title 5, United 
States Code, as added by subsection (a), shall apply with respect to 
pay periods (as described in subsection (b) of such section) beginning 
on or after the date of the enactment of this Act.

SEC. 102. ASSISTANCE FOR STATE AND LOCAL GOVERNMENTS THAT CONTINUE TO 
              PAY EMPLOYEES WHO SERVE ON ACTIVE DUTY IN A RESERVE 
              COMPONENT OF THE UNIFORMED SERVICES.

    (a) In General.--Chapter 17 of title 37, United States Code, is 
amended by adding at the end the following new section:
``Sec. 910. Assistance for State and local governments that continue to 
              pay employees who serve on active duty
    ``(a) Continuation of Civilian Basic Pay.--It is the purpose of 
this section to encourage States and local governments to continue to 
pay a portion of the civilian compensation of those employees who are 
also members of a reserve component and are absent from a position of 
employment with the State or local government under a call or order to 
serve on active duty for a period of more than 30 days so that the 
employees receive compensation in an amount that, when taken together 
with their military pay, is at least equal to their civilian 
compensation.
    ``(b) Reimbursement Offered.--(1) At the request of a State or 
local government that continues to pay all or a portion of the civilian 
compensation of an employee described in subsection (a), the Secretary 
concerned shall reimburse the State or local government for 50 percent 
of the civilian compensation paid by the State or local government for 
each pay period described in subsection (c), but not to exceed 50 
percent of the difference (if any) between--
            ``(A) the amount of civilian compensation that would 
        otherwise have been payable to the employee for such pay period 
        if the employee's civilian employment with the State or local 
        government had not been interrupted by the service on active 
        duty; and
            ``(B) the amount of military pay that is payable to the 
        employee for the service on active duty and is allocable to 
        such pay period.
    ``(2) If the pay periods described in subsection (c) extend more 
than nine consecutive months after the first day of the first month 
during which the employee began to serve on active duty for a period of 
more than 30 days, the reimbursement rate shall become 100 percent for 
the subsequent payments. However, as is the case under paragraph (1), 
reimbursement shall be provided only for the difference (if any) 
between--
            ``(A) the amount of civilian compensation that would 
        otherwise have been payable to the employee for such pay period 
        if the employee's civilian employment with the State or local 
        government had not been interrupted by the service on active 
        duty; and
            ``(B) the amount of military pay that is payable to the 
        employee for the service on active duty and is allocable to 
        such pay period.
    ``(c) Pay Periods.--Reimbursement shall be provided under this 
section with respect to each pay period (which would otherwise apply if 
the employee's civilian employment had not been interrupted) that 
occurs--
            ``(1) while the employee serves on active duty for a period 
        of more than 30 days;
            ``(2) while the employee is hospitalized for, or 
        convalescing from, an illness or injury incurred in, or 
        aggravated during, the performance of such active duty; or
            ``(3) during the 14-day period beginning at the end of such 
        active duty or the end of the period referred to in 
        subparagraph (B).
    ``(d) Effect of Failure to Return to Employment.--(1) If an 
employee described in subsection (a), with respect to whom 
reimbursement is provided to a State or local government under this 
section, fails to report or apply for employment or reemployment with 
the State or local government by the end of the period referred to in 
subsection (c)(3), the employee shall refund to the Secretary concerned 
the total amount of the reimbursement provided with respect to the 
employee.
    ``(2) Subject to paragraph (3), an obligation to refund moneys to 
the United States imposed under paragraph (1) is for all purposes a 
debt owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the end of the period referred to in subsection 
(c)(3) does not discharge the employee from a debt arising under 
paragraph (1). This paragraph applies to any case commenced under title 
11 after the date of the enactment of this section.
    ``(e) Regulations.--The Secretaries concerned shall prescribe 
regulations to carry out this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `civilian compensation' means the wages or 
        salary that an employee of a State or local government normally 
        receives from the employee's employment by the State or local 
        government.
            ``(2) The term `local government' means an agency or 
        political subdivision of a State.
            ``(3) The term `military pay' has the meaning given the 
        term `pay' in section 101(21) of this title.
            ``(4) The term `State' means each of the several States of 
        the United States, the District of Columbia, the Commonwealth 
        of Puerto Rico, Guam, the Virgin Islands, and other territories 
        or possessions of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 17 of title 37, is amended by inserting after the item relating 
to section 909 the following new item:

``910. Assistance for State and local governments that continue to pay 
                            employees who serve on active duty.''.
    (c) Application of Amendment.--Section 910 of title 37, United 
States Code, as added by subsection (a), shall apply with respect to 
pay periods (as described in subsection (b) of such section) beginning 
on or after the date of the enactment of this Act.

SEC. 103. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE CREDIT ADDED TO 
              GENERAL BUSINESS CREDIT.

    (a) Addition of Credit.--Subpart D of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to business-
related credits) is amended by adding at the end the following new 
section:

``SEC. 45J. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE CREDIT.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
employer, the active-duty reserve component employee credit determined 
under this section for the taxable year is an amount equal to 50 
percent of the compensation paid by the employer to an employee who is 
also a member of a reserve component during the taxable year when the 
employee was absent from employment for a reason described in 
subsection (b), but not to exceed 50 percent of the difference (if any) 
between--
            ``(1) the amount of compensation that would otherwise have 
        been payable to the employee during such absence if the 
        employee's employment with the employer had not been 
        interrupted by the employee's absence; and
            ``(2) the amount of military pay that is payable to the 
        employee during the absence.
    ``(b) Covered Pay Periods.--Subsection (a) shall apply with respect 
to an employee who is also a member of a reserve component--
            ``(1) while the employee serves on active duty for a period 
        of more than 30 days;
            ``(2) while the employee is hospitalized for, or 
        convalescing from, an illness or injury incurred in, or 
        aggravated during, the performance of such active duty; or
            ``(3) during the 14-day period beginning at the end of such 
        active duty or the end of the period referred to in 
        subparagraph (B).
    ``(c) Limitation.--No credit shall be allowed under subsection (a) 
with respect to an employee on any day on which the employee was not 
scheduled to work (for a reason other than such service on active duty) 
and ordinarily would not have worked.
    ``(d) Definitions.--For purposes of this section--
            ``(1) The terms `active duty for a period of more than 30 
        days', `member', and `reserve component' have the meanings 
        given such terms in section 101 of title 37, United States 
        Code.
            ``(2) The term `compensation' means any remuneration for 
        employment, whether in cash or in kind, which is paid or 
        incurred by a taxpayer and which is deductible from the 
        taxpayer's gross income under section 162(a)(1).''.
    (b) Credit to Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to general business credit) is 
amended by striking ``plus'' at the end of paragraph (18), by striking 
the period at the end of paragraph (19) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(20) the active-duty reserve component employee credit 
        determined under section 45J(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 45I the 
following new item:

``Sec. 45J. Active-duty reserve component employee credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after [December 31, 2004].

SEC. 104. ELIGIBILITY FOR RETIRED PAY FOR NON-REGULAR SERVICE.

    (a) Age and Service Requirements.--Subsection (a) of section 12731 
of title 10, United States Code, is amended to read as follows:
    ``(a)(1) Except as provided in subsection (c), a person is 
entitled, upon application, to retired pay computed under section 12739 
of this title, if the person--
            ``(A) satisfies one of the combinations of requirements for 
        minimum age and minimum number of years of service (computed 
        under section 12732 of this title) that are specified in the 
        table in paragraph (2);
            ``(B) performed the last six years of qualifying service 
        while a member of any category named in section 12732(a)(1) of 
        this title, but not while a member of a regular component, the 
        Fleet Reserve, or the Fleet Marine Corps Reserve, except that 
        in the case of a person who completed 20 years of service 
        computed under section 12732 of this title before October 5, 
        1994, the number of years of qualifying service under this 
        subparagraph shall be eight; and
            ``(C) is not entitled, under any other provision of law, to 
        retired pay from an armed force or retainer pay as a member of 
        the Fleet Reserve or the Fleet Marine Corps Reserve.
    ``(2) The combinations of minimum age and minimum years of service 
required of a person under subparagraph (A) of paragraph (1) for 
entitlement to retired pay as provided in such paragraph are as 
follows:

``If the person's age, in years,                   The minimum years of
  is at least:                                      service required is
        49.....................................................     31 
        50.....................................................     30 
        51.....................................................     29 
        52.....................................................     28 
        53.....................................................     27 
        54.....................................................     26 
        55.....................................................     25 
        56.....................................................     24 
        57.....................................................     23 
        58.....................................................     22 
        59.....................................................     21 
        60.....................................................   20''.
    (b) 20-Year Letter.--Subsection (d) of such section is amended by 
striking ``the years of service required for eligibility for retired 
pay under this chapter'' in the first sentence and inserting ``20 years 
of service computed under section 12732 of this title''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect on the first day of the first month beginning on or after 
the date of the enactment of this Act and shall apply with respect to 
retired pay payable for that month and subsequent months.

              TITLE II--HEALTH CARE AND EDUCATION MATTERS

SEC. 201. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER 
              TRICARE PROGRAM.

    (a) General Eligibility.--Subsection (a) of section 1076d of title 
10, United States Code, is amended--
            (1) by striking ``(a) Eligibility.--A member'' and 
        inserting ``(a) Eligibility.--(1) Except as provided in 
        paragraph (2), a member'';
            (2) by striking ``after the member completes'' and all that 
        follows through ``one or more whole years following such 
        date''; and
            (3) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) does not apply to a member who is enrolled, or 
is eligible to enroll, in a health benefits plan under chapter 89 of 
title 5.''.
    (b) Condition for Termination of Eligibility.--Subsection (b) of 
such section is amended by striking ``(b) Period of Coverage.--(1) 
TRICARE Standard'' and all that follows through ``(3) Eligibility'' and 
inserting ``(b) Termination of Eligibility Upon Termination of 
Service.--Eligibility''.
    (c) Conforming Amendments.--
            (1) Such section is further amended--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (g) as subsection 
                (e) and transferring such subsection within such 
                section so as to appear following subsection (d).
            (2) The heading for such section is amended to read as 
        follows:
``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of 
              the selected reserve''.
    (d) Repeal of Obsolete Provision.--Section 1076b of title 10, 
United States Code, is repealed.
    (e) Clerical Amendments.--The table of sections at the beginning of 
chapter 55 of title 10, United States Code, is amended--
            (1) by striking the item relating to section 1076b; and
            (2) by striking the item relating to section 1076d and 
        inserting the following:

``1076d. TRICARE program: TRICARE Standard coverage for members of the 
                            Selected Reserve.''.
    (f) Savings Provision.--Enrollments in TRICARE Standard that are in 
effect on the day before the date of the enactment of this Act under 
section 1076d of title 10, United States Code, as in effect on such 
day, shall be continued until terminated after such day under such 
section 1076d as amended by this section.

SEC. 202. INCREASE IN AMOUNT OF BASIC EDUCATIONAL ASSISTANCE UNDER THE 
              MONTGOMERY GI BILL FOR MEMBERS OF RESERVE COMPONENTS.

    (a) Members of the Selected Reserve.--(1) Section 16131(b) of title 
10, United States Code, is amended--
            (A) in paragraph (1), by striking ``at the following 
        rates'' and all that follows through the end and inserting a 
        period; and
            (B) in paragraph (2), by striking all and inserting the 
        following:
    ``(2)(A) The educational assistance provided under this chapter 
shall be based on the applicable percent under subparagraph (B) to the 
applicable rate provided under section 3015 of title 38 for a member 
whose entitlement is based on completion of an obligated period of 
active duty of three years.
    ``(B) The adjusted educational assistance under subparagraph (A) 
shall be--
            ``(i) 50 percent for each month of full-time pursuit of a 
        program of education;
            ``(ii) 37.5 percent for each month of three-quarter-time 
        pursuit of a program of education;
            ``(iii) 25 percent for each month of half-time pursuit of a 
        program of education; and
            ``(iv) an appropriately reduced percent, as determined 
        under regulations which the Secretary of Veterans Affairs shall 
        prescribe, for each month of less than half-time pursuit of a 
        program of education, except that no payment may be made to a 
        person for less than half-time pursuit if tuition assistance is 
        otherwise available to the person for such pursuit from the 
        military department concerned.''.
    (2) The amendments made by paragraph (1) shall apply with respect 
to educational assistance allowances under section 16131(b) of such 
title paid for months beginning after the date of the enactment of this 
Act.
    (b) Reserve Components Supporting Contingency Operations.--(1) 
Section 16162(c)(4) of title 10, United States Code, is amended--
            (A) in subparagraph (A) by striking ``40 percent'' and 
        inserting ``60 percent''; and
            (B) in subparagraph (B) by striking ``60 percent'' and 
        inserting ``70 percent''.
    (2) The amendments made by paragraph (1) shall apply with respect 
to educational assistance allowances under section 16162(c)(4) of such 
title paid for months beginning after the date of the enactment of this 
Act.

SEC. 203. PROHIBITION ON DENIAL OF BENEFITS UNDER THE MONTGOMERY GI 
              BILL FOR MEMBERS OF RESERVE COMPONENTS IN CONJUNCTION 
              WITH CALLS TO ACTIVE DUTY.

    (a) In General.--Section 16134 of title 10, United States Code, is 
amended--
            (1) by striking ``Educational'' and inserting ``(a) General 
        Rule.--Educational''; and
            (2) by adding at the end the following new subsection:
    ``(b) Prohibition on Termination of Assistance Due Solely to Call 
to Active Duty.--Service on active duty pursuant to an order to active 
duty issued under section 12301(a), 12301(d), 12301(g), 12302, or 12304 
of this title alone does not constitute failure to participate 
satisfactorily in required training as a member of the Selected Reserve 
under subsection (a)(2).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply before, on, or after the date of the enactment of this Act.

                      TITLE III--COMMUTING MATTERS

SEC. 301. LIMITED USE OF TELECOMMUTING TO SATISFY INACTIVE-DUTY 
              TRAINING PRESCRIBED OR AUTHORIZED FOR MEMBERS OF RESERVE 
              COMPONENTS.

    Section 206 of title 37, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f) The Secretary concerned may authorize a member of the 
National Guard or of a reserve component of the uniformed services to 
use telecommuting to satisfy a regular period of instruction or period 
of appropriate duty prescribed or authorized for the member or to 
perform such other equivalent training, instruction, duty, or 
appropriate duties as the Secretary may prescribe or authorize. 
Telecommuting may not account for more than 16 hours of inactive-duty 
training by a member in any calendar-year quarter.''.

SEC. 302. PRIORITY FOR SPACE-AVAILABLE TRAVEL FOR MEMBERS OF RESERVE 
              COMPONENTS.

    (a) Priority on Same Basis as Active-Duty Members.--(1) Chapter 
1805 of title 10, United States Code, is amended by adding at the end 
the following new section:
``Sec. 18507. Reserve component members: priority for space-available 
              travel
    ``The Secretary of Defense shall provide that members of the 
Selected Reserve are accorded eligibility for travel on Department of 
Defense aircraft on a space-available basis in the same category (or 
with the same priority) as is accorded to members of the armed forces 
serving on active duty.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``18507. Reserve component members: priority for space-available 
                            travel.''.
    (b) Effective Date.--Section 18507 of title 10, United States Code, 
as added by subsection (a), shall take effect at the end of the 180-day 
period beginning on the date of the enactment of this Act.
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